FountainVest Partners, a leading private equity firm and key shareholder in Amer Sports, is preparing to sell approximately half of its stake in the Finnish sports conglomerate for about $1.3 billion, according to Bloomberg reports on May 29. The partial divestment comes as Amer Sports’ premium brands like Arc’teryx and Salomon gain cult status among Chinese middle-class consumers.
From Tobacco Origins to Luxury Sportswear Empire
Amer Sports’ remarkable transformation began in 1950 as a Finnish tobacco company established by four educational organizations. After struggling through decades of diversification into shipping, publishing and paper industries, the company found its calling in 1974 with the acquisition of a hockey equipment brand.
The company’s aggressive acquisition strategy saw it absorb iconic brands including Wilson (1989), Atomic, and ultimately Arc’teryx – which joined the portfolio in 2005 when Amer purchased Adidas’ Salomon division for €485 million. Today, the company boasts 13 premium sports brands generating $5.18 billion in 2024 revenue, with Arc’teryx alone surpassing $2 billion.
The 2018 Takeover That Reshaped the Industry
A consortium led by Anta Sports, including FountainVest, Tencent, and Lululemon founder Chip Wilson, acquired Amer Sports in 2018 for €4.6 billion – then the largest outbound Chinese acquisition. Post-acquisition streamlining saw Amer shed non-core assets like Suunto watches while focusing on technical apparel, outdoor performance, and racquet sports.
The strategy paid dividends, with 20.4% CAGR growth from 2020-2022 leading to a successful NYSE listing in February 2024 at a $4.66 billion valuation. The company’s shares have since tripled to $36.85, giving Amer Sports a current market cap of $20.43 billion.
FountainVest’s Calculated Exit Strategy
Having originally invested approximately RMB7.7 billion for its 21.4% stake, FountainVest’s partial divestment at current valuations would net RMB9.35 billion – already guaranteeing healthy returns while retaining a 6.2% stake worth $1.27 billion.
The timing appears strategic, coming after Amer Sports reported staggering Q1 2025 results: 23% revenue growth to $1.47 billion and a 25-fold increase in net profit to $135 million. The outdoor apparel boom, particularly Arc’teryx’s viral popularity in China, has propelled the stock to record highs.
Fueling FountainVest’s Consumer Sector Ambitions
The liquidity event provides FountainVest with dry powder for its recent consumer sector shopping spree, including August 2024’s acquisition of pet nutrition brand RedDog and December’s $480 million purchase of Japanese jeweler Tasaki. Market rumors in February suggested the firm was eyeing Starbucks’ China operations.
Analysts view the partial exit as a textbook private equity play – harvesting returns from a mature investment while maintaining exposure to future upside, all while freeing capital for new opportunities in the rebounding consumer sector.
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